7 easy ways to start sorting your finances - Blog - BetterSaver
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7 easy ways to start sorting your finances

May 2, 2022

You know it’s important to sort your finances, but it’s the last thing you want to do with your free time. Where do you even start?

The BetterSaver team has put together seven easy ways to start sorting your finances. These are small, simple steps to begin your financial journey. Pick one and get started; you don't have to take it all on at once.

Get an idea of where you’re at, what you still need to learn, and figure out how to get the most out of your money with these doable tips.

Use online tools to find out where you’re at.

You don’t know what you don’t know. Online quizzes and calculators can give you a good idea of your current financial savviness:

  • Start with BetterSaver’s 5-question quiz to test your basic financial knowledge

  • Find out how much cash you could have in your KiwiSaver to buy your first home or when you retire with our KiwiSaver Calculator.

  • Take a money personality quiz (created in collaboration with The Myers-Briggs Company) - the results warn you of potential blind spots you may face.

Track what’s coming in and going out.

Try it for a month. It is pretty easy to do. Most banks offer simple ways to categorise your transactions and give you a visual overview month-by-month. Or you could try a third-party app. You might be surprised by what you see. You’ll probably find some easy ways to cut down on spending; do you really need all of those monthly subscriptions?

Dream a little!

This is the fun part. What do you want to do with your money? You work hard, so put your money to work for you. Think about both short-term and long-term goals. You might want to pay off your existing debt or have saved $1000 in an emergency fund. You might want to travel or put aside money for a car, house, or new wardrobe (no judgment here). It’s up to you!

Get comfortable with the B-word.

Now that you know where your money has been going, it’s time to route it to where you want it to go. If the word budget makes you stressed, relax - we have five budgeting techniques for absolutely anyone. Whether you need strict number-crunching or simple guidance on what to do with your money, there is a strategy for you. Sorted.org has a handy budget calculator if that’s your cup of tea. You can save it and come back to adjust it any time.

Automate like a boss.

Gain peace of mind and avoid late fees and penalties by automating your regular payments. While you’re at it, automate a portion of your income to be transferred into savings, so it’s done before you even think about spending it. You might want to set up several savings accounts - use one for an emergency fund and one for saving up for something you want. Before you know it, you will have the bills paid, and your savings will be growing.

Figure out KiwiSaver.

KiwiSaver can be so confusing, but we’re here to make it clear. You are automatically enrolled in KiwiSaver when you get a job. You are placed in a default fund while you figure out which fund is best for you - but if you’re like 300,000 other Kiwis, you never switch funds. That’s ok! You can switch any time, and BetterSaver makes it easy for you - even if you don’t have a clue what fund you’re in now.

Switching funds now could make a six-figure difference to your retirement savings or be a significant factor in whether you can afford a deposit on your first home. Take our Fund Finder quiz and sort your KiwiSaver in less than five minutes.

Get advice from the pros.

Make an appointment with a financial adviser. We know, it sounds like a pain, but it’s like ripping off a plaster - once you do it, you don’t have to dread it anymore. They are experts in helping you get on a sound financial track. Going through the above steps will help them assess your situation and make recommendations so you can live the life you dream of.

We make it easy for you.

Check out our blogand follow our socials for daily tips and inspiration.

And if you prefer to read on paper instead of a screen, check out our picks for personal finance books you should read in your 20s (and beyond).

If you want to have a no-obligation chat with a financial expert, send us a message with any questions. And don’t forget - take the Fund Finder quizto get matched with a KiwiSaver fund that will enable you to achieve your goals.